Top 4 Trends in Indian Specialty Chemicals Industry in 2025

In the last few years, the Indian specialty chemicals industry has undergone transformative growth, driven by both export opportunities and domestic demand. The sector’s evolution from a low-cost producer of basic chemicals to a key player in the global specialty chemicals marketplace emphasizes the sector’s adaptability and resilience.

The Indian specialty chemicals industry is poised for significant growth and transformation in 2025. This sector is expected to grow in India to approximately $50 billion by 2025, contributing significantly to the overall chemical industry’s projected value of $300 billion, making it an active hub of opportunities in an environment of global uncertainty.

Here are the top four key trends to watch out for in 2025:

Focus on High-Growth End Markets: Specialty chemical companies are investing in high-tech sectors such as semiconductors and clean energy solutions, including battery storage and green hydrogen. This strategic focus aims to capitalize on high-growth areas and meet evolving customer needs.

Increased Investments and Policy Support: The Indian government is considering a production-linked incentive (PLI) scheme to boost domestic manufacturing and exports in the chemical sector. Additionally, significant investments, including a projected $87 billion in the petrochemicals sector over the next decade, are expected to drive growth and innovation.

Export Growth and Global Positioning: India’s specialty chemical exports have been increasing by nearly 20% annually between 2021 and 2024, driven by global supply chain diversification strategies. This trend is likely to continue, enhancing India’s role as a key player in the global market.

Sustainability and Green Initiatives: Leading industry players are committing to sustainable practices, with investments in renewable energy and green hydrogen production. According to a survey by Rakuten Insight on sustainable consumption in India conducted recently, 60 percent of consumers stated that it was very important that the products they purchased were sustainably made or environmentally friendly.

These trends indicate a dynamic and evolving landscape for India’s specialty chemicals industry, with growth driven by market expansion, export opportunities, investment, technological advancements and sustainability initiatives.

Author: Mr Umasankar Mahapatra, Managing Director, Pulcra Chemicals India Pvt. Ltd.

Disclaimer: Views expressed in the article are the personal opinions of the author.